Domtar wraps oversubscribed tender for $400 million 7 7/8% notes

By Jennifer Chiou

New York, June 17 - Domtar Corp. announced the completion of its tender offer for up to $400 million of its 7 7/8% notes due 2011.

The offer ended at midnight ET on June 16. Domtar announced the cash tender offer on May 20.

Holders tendered about $431 million of the notes, making up about 80% of the total outstanding notes. The company said that it expected to accept the notes on Wednesday with a proration ratio of 93%.

As already reported, investors had tendered $415,942,000, or 77%, of the 7 7/8% notes by the early tender date of June 1.

For each $1,000 principal amount, Domtar previously said it will pay $1,010, which includes an early tender payment of $10.00 for those who tendered by the early deadline.

The company will also pay accrued interest.

Domtar previously increased the tender cap from $250 million.

J.P. Morgan Securities Inc. (call collect 212 270-1477 or 800 245-8812) and Morgan Stanley & Co. Inc. (call collect 212 761-1941 or 800 624-1808) were the dealer managers. Global Bondholder Services Corp. (212 430-3774 or 866 470-3700) was the information agent and depositary.

Domtar is a paper company based in Montreal.

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